6 Reasons The South Florida Real Estate Market Boom Will Continue

We’ve witnessed a hot real estate market in South Florida before, but this time it’s different, and for those of us working in hyper-competitive waterfront locations like Fort Lauderdale and Lighthouse Point, this isn’t going away soon. Why are we so sure?

1. Inventory Remains below Historical Lows Unprecedented Demand Keeps South Florida

South Florida’s inventory levels remain historically low, especially in the more affordable single family and waterfront single family segments. A lack of listings fuels an unaddressed demand for such properties. Houses go on the market, and they’re gone within a few days or even hours. For many years, most notably owing to our weather and favorable tax structure, people have been moving to South Florida in search of better living standards. The pandemic in other areas of the country only increased demand further.

2. Freedom of Working Remotely

The epidemic’s second, less obvious consequence was that employees were compelled to work remotely and companies were now more open to allowing their staff to work from home full-time. This implies workers may live anywhere they choose; why not consider moving to Fort Lauderdale or Palm Beach where you can take a walk on the beach before beginning your working day?

3. The Impact of the Pandemic on Real Estate in South Florida

The epidemic has driven more people to relocate, not just temporarily but permanently. The mystery surrounding Covid-19 is adding fuel to the fire, driving people to Florida, which is quickly becoming a preferred destination for those seeking a tropical environment with year-round activities such as dining and beach activities.

The reasons for these changes are twofold: first, because of both permanent and temporary migrations, there has been a significant influx from other states; second, some businesses have laid off their employees until the situation with Covid-19 settles down.

4. More Primary Residence Sales vs. Luxury Second Homes

Second home, holiday, and investment property ownership have long been a significant portion of the real estate market in South Florida. Second home ownership in the state has exacerbated fluctuations in property values. We’re seeing more people relocate their businesses and families to Florida, making it their permanent residence.

According to the US Census, Broward County’s population has grown by almost 200,000 people since 2010, a growth of 11.7% in Florida as a whole and over 14% in total. Sure, the state of Florida will always be a popular destination for a vacation home, but we should see greater stability in our real estate market as a result of more primary residents moving to the state.

5. Florida Regulations are Attractive for Businesses

Florida is attracting firms from all around the country, with a particular focus on banking, financial and technological businesses. KPMG, Blackstone, Goldman Sachs, Amazon, and Windstar are just a few of the well-known firms considering Florida for growth. Because there is no state income tax in Florida, more executives are drawn to move or expand their operations here. In Florida, there are several incentives for businesses to relocate or expand their operations. For example, there is a strong higher education system and an expanding transport infrastructure.

6. The Real Estate Market in South Florida Is Still Reasonable

Yes, real estate costs in South Florida have increased similarly too many other regions throughout the country during the economic recovery. When you consider where many of our new residents are coming from, however, our market is still reasonably affordable. As of January 2022, the typical value of a single-family property in Fort Lauderdale is $419,555, according to Rocket Homes. In contrast, average home values in Boston are $754,000; in New York they are $793,000; and in San Diego they are almost twice as much at $1,100,000.

South Florida Real Estate Summary

The bottom line is that southern Florida’s real estate market is exploding, and we expect a robust market for many years to come. The question now becomes how long the current situation can last. If you’re a buyer hoping for costs to drop, don’t hold your breath.

It’s still a good time to buy as long as interest rates stay low. If you’re a seller considering putting your house on the market, now might be an excellent opportunity to sell that single family property and get a nice condo on the beach. Buyers and sellers have limitless opportunities. Make certain you have the best real estate agent to assist you in this tough market.